Electricity Market, Today and Tomorrow
Why a wholesale electricity market?
Many jurisdictions throughout North America use wholesale electricity markets, including Alberta, New York, California and New England. They do this because competition to supply the market in real time ensures electricity is produced at lowest cost to consumers. A transparent market provides participants and system planners with useful demand, supply, and price data, which results in better decisions both in the near and long term.
Wholesale markets also work to open up the electricity sector and help level the playing field for different participants and technologies, for example, allowing consumers to compete against generators to provide services that help balance the system.
This diversity of participation makes the system more competitive and helps lower the cost of providing electricity service. New players are bringing with them new services and capabilities to help meet system needs, enabling the IESO to manage the system in more efficient and cost-effective ways.
Did you know?
Ontario’s competitive electricity market began operating on May 1, 2002.
Learn more about the Market Renewal Project, an initiative to renew the foundations of Ontario’s electricity market design.
For more information, see Demand Response Auction.